• Revenue Growth: 3% increase in Q4 2024, reaching $169 million.
• Grill Revenue: Increased by 30% year-over-year to $78 million in Q4 2024.
• Consumables Revenue: Grew by 25% to $31 million in Q4 2024.
• Accessories Revenue: Declined by 24% to $60 million in Q4 2024.
• Gross Margin: Improved by 410 basis points to 40.9% in Q4 2024.
• Adjusted EBITDA: Increased by 41% to $18 million in Q4 2024.
• Net Loss: $7 million in Q4 2024, compared to a net loss of $24 million in Q4 2023.
• Cash and Cash Equivalents: Ended the year with $15 million.
• Total Net Debt: Declined by $9 million to $394 million.
• Inventory: $107 million at the end of Q4 2024, up from $96 million a year ago.
• 2025 Revenue Guidance: $595 million to $615 million, ranging from down 2% to up 2% versus 2024.
• 2025 Adjusted EBITDA Guidance: $75 million to $85 million.

• Warning! GuruFocus has detected 3 Warning Signs with COOK.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Traeger Inc (NYSE:COOK) reported a 3% revenue growth in Q4 2024, with significant strength in the Grills business, which saw a 30% increase compared to the previous year.
• The company achieved a 410 basis point improvement in gross margin in Q4 2024, contributing to a 41% increase in adjusted EBITDA from the previous year.
• Traeger Inc (NYSE:COOK) successfully launched the Woodridge series of wood pellet grills, which features technological innovations and has received positive consumer reception.
• The company expanded its consumables distribution by partnering with Walmart, providing a new channel for consumers to purchase Traeger pellets and rubs.
• Traeger Inc (NYSE:COOK) made progress in brand awareness and market share, with initiatives like social media engagement and strategic partnerships enhancing brand visibility.

Negative Points

• The accessories business, particularly MEATER, underperformed expectations in Q4 2024, with a decline in revenue attributed to increased competition and higher advertising costs.
• Traeger Inc (NYSE:COOK) anticipates continued pressure on accessories revenues in 2025, driven by expected declines in MEATER performance.
• The company faces uncertainty regarding tariffs, with approximately 50% of its sales driven by goods imported from China, potentially impacting future financial results.
• Despite revenue growth, Traeger Inc (NYSE:COOK) reported a net loss of $7 million in Q4 2024, although this was an improvement from the previous year's loss.
• The company expects a year-over-year decline in revenues and adjusted EBITDA in Q1 2025, reflecting challenges in multiple segments and the impact of tariffs.

Q & A Highlights

Q: Can you expand on the expected softness in the accessories business for 2025 and whether there might be an inflection point during the year? A: Dominic Blosil, CFO, explained that they are conservatively forecasting MEATER under current circumstances, particularly based on its Q4 performance. While there are opportunities for retail expansion, they are managing guidance with conservatism due to current trends.

Q: Have you seen a normalization of return on ad spend after the elevated advertising costs during the election period in Q4? A: Dominic Blosil noted that while macro-level normalization is expected, Q1 insights for MEATER may not be indicative of future trends due to its revenue concentration in Q4. They will use learnings from upcoming quarters to inform future strategies.

Q: Is the expected decline in Q1 revenues largely due to MEATER, or does it reflect declines in other segments as well? A: Dominic Blosil stated that the decline reflects multiple segments, influenced by demand impacts from tariffs and revenue recognition challenges, making it difficult to predict quarter-to-quarter sequencing.

Q: What is your view on the overall grill market in 2025, given the past years of decline? A: Jeremy Andrus, CEO, mentioned that the industry appears to have found a bottom, with expectations for modest growth in 2025. Traeger gained market share in 2024, and they anticipate a more normalized replacement cycle for grills.

Q: How do you plan to address the lower price point market in 2025, given the success of the Pro Series 22 last year? A: Jeremy Andrus highlighted that the Woodridge series is positioned at a premium but accessible price point. They learned from the Pro 22's success and plan to ensure full stock availability, targeting different customer segments with clear trade-up stories.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.